How Stagecoach’s ‘best ever’ east coast rail franchise failed

Martin Griffiths, chief executive of Stagecoach, argued that its offer for the east coast rail franchise was based on government figuresSTAGECOACH/PA

Stagecoach’s bid to run the troubled east coast rail franchise was praised by the government as the “highest quality” it had ever seen — and then three years later it collapsed.

Martin Griffiths, chief executive of the group, said that he was told when the bid was accepted in 2014 that it was the best the Department for Transport had signed off. He also said that the offer, which has since been described as over-optimistic by Chris Grayling, the transport secretary, was partly based on the government’s own figures. Experts say that at least three other franchises handed to private companies are also in trouble because they were based on optimistic passenger forecasts.

Mr Grayling said yesterday that the Virgin Trains contract to operate services…